Not able to scale up - Narayana Hrudayalaya shuts down operations in Bengaluru


Daijiworld Media Network - Bengaluru (MS)

Bengaluru, Nov 10: In a shocking development, well-known hospital of the city Narayana Hrudayalaya at Whitefield in the city was shut down. According to the management of the company the unit was shut because it could not scale up according to their expectations.

In an exchange filing on late Friday evening, Narayana Hrudayalaya said, "The hospital was opened as an upmarket segment which provided day-care and short-stay facilities except Cardiac care and Oncology. But the facility could not grow due to multiple reasons. The inability of the lessor to provide additional infrastructure also is one of them."

Narayana Hrudayalaya opened this facility on 1.1 lac square feet area in 2013 at Whitefield of the city with a capacity of 91 beds. The goal of the company was a phase-wise expansion of the hospital to make it an economically viable and sustainable project. The company owns 21 hospitals and looks after the management of two hospitals. In addition, this healthcare chain company hass 19 primary health care centres and seven heart centers including one hospital in the Cayman Islands.

Surprisingly, the consolidated net profit of the company jumped to Rs 45.3 crore from Rs 13.6 crore, a three-fold increase for the second quarter of the fiscal. The consolidated revenue of the company shot up by 15.6% to a whopping Rs 822.3 crore. The operating income of the hospital reported for the same quarter was Rs 128 crore, a jump of 68.3%.

These profits were the result of dynamic sales strategy of the company as well as advanced accounting standards for rental and leases of its facilities. The hospital chain is led by renowned Cardiac surgeon Dr Devi Shetty.

  

Comment on this article

  • Vinay, Bangalore North

    Tue, Nov 12 2019

    {These profits were the result of dynamic sales strategy of the company as well as advanced accounting standards for rental and leases of its facilities. The hospital chain is led by renowned Cardiac surgeon Dr Devi Shetty.}


    These profits were made from blood and sweat of poor doctors and nurses. They had to do double shifts with no breaks and extremely less pay. The nursing staff and supporting staffs were denied of diwali bonus and even ayudapuja sweets were not given, to save 12lakhs from sweets and show it to the board as profits. That's how profit has doubled three times. The infection rate and death rate are high here, due to both double shift work and low standards. They provide affordable care because they re-use everything, every instruments. The doctors and nurses here are least paid in the country. You have to get your patients and take money. Dr Devi Shetty should learn from kmc Manipal. How they treat their employees. Not just to run behind money and asking for CHEAP LABOUR.

    DisAgree [3] Agree [1] Reply Report Abuse

  • maxy, kinnigoly/mumbai

    Tue, Nov 12 2019

    All devils setups will have honest & up right face viz;Manmohan Singh to congress,Pope Francis to church, similarly Dr. Devi Prasad shetty may be for NH.What happen below them & who call the shots is...is a mystery.

    DisAgree [2] Agree [1] Reply Report Abuse

  • Ozy, Surathkal

    Mon, Nov 11 2019

    How much bank loan does this hospital has?. And does all Directors are still in India or migrated to other countries?

    DisAgree [1] Agree [4] Reply Report Abuse

  • Keerthi Kumar, Bangalore

    Mon, Nov 11 2019

    Narayana Hrudayala is a good hospital for providing good healthcare at affordable price. Recently my father underwent heart surgery successfully at Narayayana Health main hospital(Bomasandra). If you have health care scheme ,fees are affordable there. But NH at whitefield is a more of corporate hospital.But unfortunately whitefield area has got plenty of traffic congestion and very high rent.

    DisAgree [1] Agree [3] Reply Report Abuse

  • ca girishkk, m'lore/dxb

    Mon, Nov 11 2019

    Courtesy ... Pakodanomists....!!!!

    DisAgree [12] Agree [10] Reply Report Abuse

  • j.anata, Mangaluru / Bengaluru

    Mon, Nov 11 2019

    This is pure mismanagement.

    DisAgree [5] Agree [11] Reply Report Abuse

  • Karuna, Bangalore

    Sun, Nov 10 2019

    I really don't understand the hue and cry of closing down one of the hospital's,.and that too in an location of Bangalore, where people fear to travel because of the traffic jams created by the metro works, narrow roads and congested and over crowded multi national office of various IT sectors. It will take atleat minimum of two hours for an ambulance to reach the hospital, by the time patient would have died. Secondly a hospital needs more than 200 beds to achive a break even. It is a private organisation, profit is their motto

    DisAgree [5] Agree [13] Reply Report Abuse

  • Shalet, Mangalore

    Mon, Nov 11 2019

    Karuna ,
    You wouldn't have commented like thisif at all you met Dr Devi once at least .

    DisAgree [2] Agree [10] Reply Report Abuse

  • MV, Mangalore, Mangalore

    Sun, Nov 10 2019

    Cayman Islands problem?

    DisAgree [2] Agree [10] Reply Report Abuse

  • Kusuma Kumari Gunji, Nellore Kodyadka

    Sun, Nov 10 2019

    Is this a message that Indian economy is slowing down ? Dr Shetty was providing affordable health care to many. Now its become that we have to depend on other costly care . The Govt must help people like Dr SHetty who was providing good health care and help the needy and poor

    DisAgree [9] Agree [39] Reply Report Abuse

  • Surendra Poojari, Mangalore

    Sun, Nov 10 2019

    Give Modi another five years and he will sell off India. This is the mistake of reelecting idiots.

    DisAgree [48] Agree [96] Reply Report Abuse

  • Anil, Dubai

    Sun, Nov 10 2019

    No wonder... tomorrow government will say merge private hospital with government hospital … !!!

    DisAgree [11] Agree [52] Reply Report Abuse

  • El En Tea, Mumbai

    Sun, Nov 10 2019

    Whats happening in India after Bank fraud shutdown
    Jewellery scam shutdown
    Now Hospitals

    DisAgree [5] Agree [53] Reply Report Abuse

  • Dev, Mangalore

    Sun, Nov 10 2019

    Time for govt. or Mr B R Shetty to intervene & possess the hospital as he is expanding his hospital chain in Udupi & Amravathi.

    DisAgree [7] Agree [28] Reply Report Abuse

  • Edward Menezes, Shirva.

    Sun, Nov 10 2019

    Dr. B.R.Shetty has nothing to do with this hospital, It belongs to Dr. Devi Shetty who helped thousands of people to rebeat their heart.

    DisAgree [2] Agree [30] Reply Report Abuse

  • Karuna, Bangalore

    Mon, Nov 11 2019

    Both Mr Devi Shetty and B R Shetty might be good people, but there is no alternative other than making money out of any business. If they have to serve and grow, first they have earn money then only charity comes into picture. Last but not the least nothing comes free in this world. Every business including hospital is for making money.

    DisAgree Agree [3] Reply Report Abuse

  • Dr.S.Kamath, Mumbai

    Sun, Nov 10 2019

    Its a wise scaling of economy move
    Dr.Shetty might have noticed there is no scope for expansion and no expansion no business increase

    DisAgree [3] Agree [45] Reply Report Abuse

  • Sunil Pinto, Dubai/ Udupi

    Mon, Nov 11 2019

    Kokilaben hospital owner in Mumbai can make his entry now into Bangalore without any competition....

    DisAgree [4] Agree [5] Reply Report Abuse

  • Richard Rodrigues, Niddodi

    Sun, Nov 10 2019

    Let them open one each hospital in Udupi and Mangalore

    DisAgree [3] Agree [26] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Sun, Nov 10 2019

    Shut Down India ...

    DisAgree [26] Agree [41] Reply Report Abuse

  • Cynthia, Kirem

    Sun, Nov 10 2019

    Ye Deva mujya 😳😳

    DisAgree [1] Agree [20] Reply Report Abuse

  • Deshbhakht, Mangalore

    Sun, Nov 10 2019

    {But the facility could not grow due to multiple reasons. The inability of the lessor to provide additional infrastructure also is one of them."}

    The article says that the organization made remarkable profits. Yet, why is it depending upon the lessor to provide additional infrastructure ? Wasn't moving to a larger unit an apt arrangement than closing down the unit altogether ? Naraya Hrudaualaya has been in the news for helping many needy, hence to read that its closing down is a great disappointment. God knows one of us could have been at your doorstep asking for help some day.

    Whatever your position may be, you have prayers and good wishes from those benefited from you. Do not close down your units, please multiply so that your good work continues.

    DisAgree Agree [35] Reply Report Abuse

  • Riya, Mangalore

    Sun, Nov 10 2019

    What is this nothing improved i dont think it will be fulfilled blame???

    DisAgree Agree [19] Reply Report Abuse


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